Income distribution determinants and inequality in Croatia

This paper presents the determinants of income distribution and their inequality in Croatia. The aim of this paper is to identify all variables affecting income distribution and inequality in Croatia. Looking at the data from 2001 to today, we come to the conclusion about the possible impact of social transfers, inflation, wages, government consumption and other variables on income distribution. In this paper, we will specifically focus on the calculation of inequality in the distribution of income based on the basic indicators for the calculation of inequality such as the Gini coefficient and other measures. Today, we can talk about the influence of the state on income distribution, the impact of education, regional influences, and other impacts, but we can’t quantify individual impacts. There is no calculation that would show us the importance of an individual impact or its quantifiable effect. It is precisely the basis of this paper, where it tries to show the effect of certain variables, as well as their importance in order. The issue that goes through this paper is very important because it seeks to determine the determinants of income distribution and on the basis of this determinants, it estimates why inequality in income distribution occurs and how this inequality can affect other aspects of the economy. Based on this paper, one can get an answer on how and whether inequality in the distribution of income affects the creation of an economic crisis. This paper is a continuation of the research conducted in Croatia on the topic of inequality in the distribution of income. However, these papers have looked at the individual effects on income distribution, such as the influence of the state, the level of education etc. Unlike previous works, this paper tries to evaluate all possible impacts on inequality in income distribution and also to show their mutual influence and classify their importance.